Treasury Play: Strategy Corp’s Stock Could Surge 60% by 2025, Says Citi
- Why Is Strategy Corp Called the "Corporate Bitcoin Proxy"?
- How Does Citi Justify the $485 Price Target?
- What Are the Risks of Investing in Strategy Corp?
- HYLQ: A Diversified Crypto Play Worth Watching?
- FAQ: Your Strategy Corp Questions Answered
Citi’s latest report highlights Strategy Corp as the top Bitcoin proxy in traditional markets, projecting a 60% upside for its stock if BTC hits $181K by 2026. The bank’s bullish outlook hinges on Strategy’s aggressive BTC accumulation—now holding 640,418 BTC ($71B)—and its Leveraged exposure to crypto cycles. Meanwhile, HYLQ emerges as a niche alternative for diversified crypto bets. Below, we break down the risks, rewards, and why Wall Street can’t ignore this corporate Bitcoin whale.
Why Is Strategy Corp Called the "Corporate Bitcoin Proxy"?
Citi’s analysts dub Strategy Corp (ticker: STRAT) the go-to bitcoin play for institutional investors avoiding direct crypto ownership. The firm’s treasury strategy—buying BTC via stock offerings and convertible debt—has amassed a staggering 640,418 BTC (worth ~$71B at $109K/BTC). "This isn’t just holding; it’s financial engineering," notes the BTCC research team. Strategy’s shares typically amplify BTC’s moves: historically delivering 2.5x–3.5x Bitcoin’s gains during bull runs but also deeper losses in corrections.
How Does Citi Justify the $485 Price Target?
Citi’s $485 target (vs. current ~$301) assumes Bitcoin reaches $181K by 2026—a 66% premium to STRAT’s NAV. The math? Strategy trades at a 25–35% premium to its Bitcoin holdings, reflecting its "operational leverage" in crypto markets. "You’re paying for their ability to compound BTC gains," explains a BTCC analyst. Recent moves back this thesis: STRAT added 168 BTC this week at $112,051 each, defying BTC’s 1% dip to $109K (per CoinGecko).
What Are the Risks of Investing in Strategy Corp?
Citi flags STRAT as "high risk" for good reason. A 25% BTC drop could erase 60% of STRAT’s value—worse than holding BTC directly. The stock’s volatility mirrors its 2022 crash when BTC fell 65% and STRAT lost 80%. "This isn’t for the faint-hearted," warns Michael Saylor’s former hedge fund manager. Yet, the upside tempts whales: STRAT gained 1.79% on Tuesday (Oct 21) while BTC slid, showing its idiosyncratic momentum.
HYLQ: A Diversified Crypto Play Worth Watching?
For investors seeking crypto exposure beyond Bitcoin, HYLQ Strategy Corp (CSE: HYLQ) offers a basket approach. The Canadian holding company backs payment solutions, online gambling, and altcoins—sectors growing at 20%+ annually. "HYLQ is like a mini-conglomerate for Web3," says a TradingView commentator. While riskier than STRAT, its 12% YTD gain outpaces both BTC and the S&P 500.
FAQ: Your Strategy Corp Questions Answered
How does Strategy Corp make money from Bitcoin?
Strategy doesn’t mine or trade BTC—it borrows at low rates (via stock/debt sales) to buy and hold Bitcoin, banking on long-term appreciation. Its profit comes from the widening gap between BTC’s price and its funding costs.
Is Strategy Corp’s stock a better investment than Bitcoin itself?
Only if you believe BTC will rise steadily. STRAT outperforms in bull markets but crashes harder in bear cycles. For passive holders, direct BTC may be simpler.
What happens if Bitcoin stagnates below $100K?
Citi’s model implies STRAT could drop 30–40% if BTC stays flat, as its premium to NAV WOULD collapse. The bank’s bull case requires BTC’s rally to continue.
